ATSG Orders More Boeing Freighter Conversions to Meet Strong Demand

Rhea-AI Summary

Air Transport Services Group (ATSG) has announced a second order with Boeing (BA) for the conversion of four 767-300 aircraft into Boeing Converted Freighters (BCF), with an option for four more. The conversions are set to begin in late 2023, building on ATSG's prior order in November 2021. With this latest commitment, ATSG has secured over 80 conversion slots over the next five years, reflecting ongoing strong demand for the 767-300 platform among e-commerce and express providers.

Positive

• Secured additional orders for four 767-300BCF conversions, building on previous commitments.
• Strong demand for 767-300 platform among e-commerce and express providers.
• More than 80 passenger-to-freighter conversion slots secured for the next five years.

Negative

• None.

WILMINGTON, Ohio--(BUSINESS WIRE)-- Air Transport Services Group, Inc. (Nasdaq: ATSG), the world’s largest owner and operator of converted Boeing 767 aircraft, announced today that its leasing subsidiary Cargo Aircraft Management has placed a second order with Boeing (NYSE: BA) for the conversion of four CAM-owned 767-300 aircraft into Boeing Converted Freighters (BCF), with an option for four additional conversions beyond that. The conversions are slated to begin in late 2023.

ATSG has ordered four more conversions from Boeing. Pictured (l to r) are Boeing Freighter Conversions Director Jens Steinhagen, Boeing Vice President of Commercial Marketing Darren Hulst, ATSG President and Chief Executive Officer Rich Corrado, and ATSG Chief Commercial Officer Mike Berger. (Photo: Business Wire)

“Demand for the 767-300 platform remains strong among e-commerce and express providers,” said Mike Berger, chief commercial officer of ATSG. “As the world leader in midsize freighter leasing, ATSG is committed to fulfilling our 360-degree brand promise to provide wide-spectrum support for our customers around the globe as they continue to grow market share and expand their reach.”

ATSG’s initial order of four 767-300BCF conversions was announced in November 2021. With these four additional Boeing conversion commitments, ATSG now has secured with its conversion suppliers more than 80 passenger-to-freighter conversion slots over the next five years.

“We are thrilled that ATSG has again selected the 767-300BCF to increase their portfolio and fleet growth for e-commerce and express customers around the world,” said Jens Steinhagen, director of the Boeing Converted Freighter program. “The 767-300BCF is in strong demand, and we are adding three additional 767-300BCF conversion lines at new and existing MRO suppliers around the globe to help customers like ATSG provide their customers with the dedicated freighter capacity they need.”

About Air Transport Services Group

ATSG is a leading provider of aircraft leasing and cargo and passenger air transportation and related services to domestic and foreign air carriers and other companies that outsource their cargo and passenger air lift requirements. ATSG, through its leasing and airline subsidiaries, is the world's largest lessor of freighter aircraft as well as the largest owner and operator of converted Boeing 767 freighters. Through its principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, passenger ACMI and charter services, aircraft maintenance services and airport ground services. ATSG's subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Airborne Maintenance and Engineering Services, Inc., including its subsidiary, Pemco World Air Services, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; and Omni Air International, LLC. For more information, please see www.atsginc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220314005830/en/

Quint O. Turner

ATSG Chief Financial Officer

937-366-2303



Charles Kauffman

Boeing Global Services Communications

charles.w.kauffman2@boeing.com

Source: Air Transport Services Group, Inc.

FAQ

What did ATSG announce regarding Boeing 767 aircraft?

ATSG announced a second order for the conversion of four Boeing 767-300 aircraft into Boeing Converted Freighters (BCF) with an option for four more.

When will the 767-300 conversions start?

The conversions are slated to begin in late 2023.

How many conversion slots has ATSG secured?

ATSG has secured more than 80 passenger-to-freighter conversion slots over the next five years.

What is the significance of the demand for the 767-300 platform?

The strong demand for the 767-300 platform indicates the growth of e-commerce and express providers.